Although the Federal Reserve didn’t hike rates yesterday, the markets are still on edge given the Brexit vote on the 23rd. All three indexes and crude futures are in the red, and the VIX is above 20. Among the stocks buzzing today are TravelCenters of America LLC (NYSE:TA), Citigroup Inc (NYSE:C), QLogic Corporation (NASDAQ:QLGC), Cavium Inc (NASDAQ:CAVM), and Nu Skin Enterprises, Inc. (NYSE:NUS). Let’s find out why each stock is in the spotlight today, and use the latest round 13F filings to see how smart money investors from our database are positioned towards them.
At Insider Monkey, we track around 770 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
TravelCenters of America Rallies on Rumors
TravelCenters of America LLC (NYSE:TA) surged by 23% on heavy volume yesterday and is up modestly in extended market trading today after rumors broke that the company rejected a $14 per share acquisition offer from Golden Gate Capital last December. According to the Wall Street Journal, the private equity firm could be still interested in an acquisition despite the rejection. The article was enough to send shares of the TravelCenters rallying. Whether a deal ultimately comes out of the rumors is unknown, seeing as Golden Gate Capital isn’t interested in going hostile at the moment. 8 top funds owned shares of TravelCenters of America LLC (NYSE:TA) at the end of March.
Fitch Reaffirms Citigroup Debt Rating
Citigroup Inc (NYSE:C) is in the news after credit ratings agency Fitch reaffirmed the company’s ‘A’ long-term credit rating. Analysts at Fitch cited Citigroup’s robust capital and liquidity levels and the company’s dedication to becoming a simpler and safer bank as reasons for the affirmation. Citigroup shares have retraced recently due to Brexit fears and the Fed’s decision to keep interest rates lower for longer. Shares have upside in the long term as interest rates normalize and emerging markets continue to grow. A total of 101 funds had a long position in Citigroup Inc (NYSE:C) at the end of March, down by five funds from the previous quarter.
On the next page, we examine QLogic Corporation, Cavium, and Nu Skin Enterprises.